Euro Sun Mining (ESM) AI Stock Analysis

• Market Cap: C$63.73M
• Dividend Yield: N/A
• Average Volume (3M): 861.69K
• Price to Earnings (P/E): 65.2
• Beta (1Y): -0.64
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 57
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 398,336,100
• 10 Day Avg. Volume: 809,232
• 30 Day Avg. Volume: 861,689
• PEG Ratio: 0.08
• Price to Book (P/B): 5.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.30
• Enterprise Value/Market Cap: 0.19
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -1.09
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 34 Underperform
• Price Target: ―

Euro Sun Mining faces significant financial challenges with no operational revenue, negative equity, and persistent cash flow deficits, weighing heavily on its score. While technical indicators show positive momentum, high valuation ratios and lack of dividend yield are concerning. The designation of the Rovina Valley Project as a strategic asset by the EU and recent financing are positive, yet overshadowed by financial instability.

Euro Sun Mining Business Overview & Revenue Model

Company Description

Euro Sun Mining Inc. (ESM) is a Canadian-based mining company focused on the exploration and development of mineral properties in Europe. The company's primary asset is the Rovina Valley Project located in Romania, which is one of the largest undeveloped gold-copper projects in Europe. Euro Sun Mining is committed to responsible mining practices and aims to provide sustainable value to its stakeholders through efficient extraction of its mineral resources.

How the Company Makes Money

Euro Sun Mining generates revenue primarily through the exploration, development, and anticipated future production and sale of gold and copper from its Rovina Valley Project. The company's revenue model relies on successfully bringing its mining projects to operational status, thereby enabling the extraction and sale of precious and base metals. Key revenue streams include the sale of mined gold and copper on global commodity markets. Euro Sun Mining’s earnings potential is significantly influenced by factors such as mineral market prices, successful project development, and operational efficiency. Partnerships with local stakeholders and compliance with regulatory frameworks are also critical to its revenue generation strategy.

Euro Sun Mining Financial Statement Overview

Summary

Euro Sun Mining exhibits a challenging financial situation with no revenue, negative equity, and persistent cash flow deficits. Reliance on external financing for operations is unsustainable, underscoring the need for revenue generation and improved cost management.

Income Statement

Euro Sun Mining's income statement shows zero total revenue over multiple periods, highlighting the absence of operational income. The company has consistently reported negative EBIT and net income, indicating persistent operational losses. The lack of revenue and profitability poses significant challenges for future financial sustainability.

Balance Sheet

The balance sheet is concerning with negative stockholders' equity, indicating the company is insolvent. The debt-to-equity ratio cannot be calculated due to negative equity. Total assets have significantly declined over the years, and liabilities exceed assets, further highlighting financial instability. The company's financial leverage is high, raising concerns about its ability to meet long-term obligations.

Cash Flow

Cash flow from operations is consistently negative, reflecting ongoing cash outflows from core activities. The free cash flow is also negative, suggesting the company is reliant on external financing. Despite some positive financing cash flow, the inability to generate positive cash from operations is a major risk for liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	-72.54K	0.00	0.00	0.00
EBITDA	-2.18M	-3.38M	-6.70M	-10.46M	-11.33M
Net Income	448.39K	-5.47M	-8.20M	-10.90M	-12.93M
Balance Sheet
Total Assets	725.91K	673.00K	1.49M	1.51M	10.23M
Cash, Cash Equivalents and Short-Term Investments	116.35K	45.02K	912.67K	182.09K	8.70M
Total Debt	243.24K	700.34K	2.49M	318.92K	187.57K
Total Liabilities	2.86M	5.61M	5.66M	3.41M	3.10M
Stockholders Equity	-2.13M	-4.94M	-4.17M	-1.89M	7.13M
Cash Flow
Free Cash Flow	-1.98M	-2.38M	-4.54M	-9.78M	-11.99M
Operating Cash Flow	-1.98M	-2.38M	-4.53M	-9.60M	-11.84M
Investing Cash Flow	903.00	-15.38K	-9.30K	472.55K	-1.71M
Financing Cash Flow	1.82M	1.65M	5.27M	1.39M	19.90M

Euro Sun Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ESM, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.12, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 68.83 is Neutral, neither overbought nor oversold. The STOCH value of 95.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ESM.

Euro Sun Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NGD	77 Outperform	$5.44B	28.19	14.62%	―	23.61%	―
EDV	76 Outperform	C$10.28B	―	-3.12%	3.99%	59.60%	-74.74%
BTO	74 Outperform	$6.63B	―	-17.61%	2.27%	5.97%	-1677.31%
OR	72 Outperform	$6.62B	150.53	2.50%	0.86%	12.78%	―
SSRM	69 Neutral	C$3.40B	30.03	2.71%	0.76%	-16.65%	―
Sector *	44 Neutral	C$964.86M	-6.72	-13.73%	2.52%	17.53%	-32.55%
ESM	34 Underperform	C$63.73M	65.22	93.63%	―	―	―

Euro Sun Mining Corporate Events

Euro Sun Mining’s Rovina Valley Project Gains EU Strategic Asset Status

Euro Sun Mining’s Rovina Valley Project has been designated as a strategic asset by the European Union, allowing for expedited permitting under new legislative guidelines. This recognition not only supports Euro Sun’s operations but also positions Romania as a key player in the supply of critical raw materials essential for Europe’s strategic interests and energy transition.

Euro Sun Mining Closes Financing Tranche and Issues Debenture for Project Advancement

Euro Sun Mining Inc. announced the closure of the final tranche of a non-brokered private placement, raising C$274,000 through the issuance of units priced at C$0.05 each. The proceeds will be used to advance the Rovina Valley Project and for corporate purposes. Additionally, Euro Sun issued a $350,000 debenture with a director’s holding company, secured against company assets, to fund mining license fees and working capital, marking a related party transaction.

Euro Sun Mining Secures Third Tranche of Financing for Rovina Valley Project

Euro Sun Mining has successfully closed the third tranche of its non-brokered private placement financing, raising C$285,045 by issuing 5,700,900 units at C$0.05 each. The proceeds will be used to advance the Rovina Valley Project and for general corporate purposes, with the offering receiving conditional approval from TSX to extend until February 13, 2025.